The nucleus is located in the transition between the diencephalon and telencephalon within the basal forebrain area. It is located posteriorly/dorsally of the amygdala, in close relationship with the septal nuclei and in front of the tip of the thalamus.
The nucleus is part of the limbic system and has well-developed round-trip connections with the amygdala (via the strife), septal region, hypothalamus and brainstem. Part of the outgoing nerve fibers of the nucleus forms the marrow streak of the visual mound (stria medullaris thalami) and contacts nerve cells in the reins (habenula).